Coforge Ltd. has secured Reserve Bank of India approval for overseas direct investment surpassing $1 billion, paving the way for its proposed acquisition of Encora, as disclosed in a stock exchange filing.
Moreover, this nod under the Foreign Exchange Management (Overseas Investment) Rules removes a major regulatory barrier for the deal involving Encora US Holdco Inc. and Encora Holdings Ltd.
Building on its prior announcement, Coforge entered a share subscription and share purchase agreement with the target entities, Encora Holdco Ltd. and AI Altius Parent (Cayman) Ltd.
Previously, the company obtained several clearances, including U.S. approval under the Hart-Scott-Rodino Antitrust Improvement Act; shareholder nod through postal ballot for preferential allotment and debt funding; and competition approvals in places like Australia.
Now, with RBI approval secured, “the remaining approvals are in advanced stages,” Coforge stated in its filing.
Thus, this milestone accelerates Coforge’s global expansion through the Encora acquisition, thereby strengthening its position in the tech services landscape amid rising M&A activity.
